Shiley Settlement Reviewed by Judge

A federal judge on Friday took under consideration a proposal to establish a $205-million fund to compensate recipients of potentially defective Shiley heart valves.

Attorneys for Shiley Inc., the Irvine-based manufacturer of the device, and its parent company, Pfizer Inc. in New York, outlined the offer before U.S. District Judge S. Arthur Spiegel in Cincinnati to pay $75 million toward research and valve replacement surgery and an additional $80 million to $130 million to pay for physician consultations and anxiety-related medical expenses.

Shiley would also set aside $300 million more for future patient or survivor claims. The company estimates there are nearly 55,000 valve recipients worldwide.